B.O.A.C.'s First Profit
The general optimism about the future of British a via. tion has been soundly strengthened by the annual report of the British Overseas Airways Corporation, which shows a leap from the deficit of £41 million in 1950-51 to a profit of Elf million in 1951-52. It is good to see such a dramatic; change—as the chairman of the Corporation, Sir Miles Thomas,' called it—in the finances of a nationalised concern, and good also to see that the Corporation has paid its way -genuinely last year. The Exchequer grant provided for the year was £41 million, but the improvement in the Corporation's financial position enabled this to be reduced first to £3 million and then to Eli million; a sum which will go towards cutting the accumu. lated deficiency to an amount not much more than the profit made last year. When he discussed the report with journalists, Sir Miles gave a warning against the assumption that the improvements of last year could easily be continued. The fact remains, however, that the Corporation has sharpened its efficiency as a commercial organisation : the average load was increased by six per cent. on a carrying capacity itself increased by a fifth; and thanks to a variety of improvements and economies, the point at which loss turns into profit is now sixty-five per cent. of aircraft capacity instead of seventy-five per cent. The report raises the issue of mail rates and points out that these are still below the international level. There is the plain statement that the Corporation " does not seek and never has sought a veiled subsidy in the form of mail rates ": at the same time, it sees no reason " why the posting public should be subsidised by the travelling public." That is a fair comment, and. after the years of criticism the Corpora- tion must be glad of the chance to make it.
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